Introduction of offshore bunkering facilities important for sector’s future – MMF Chairman

The introduction of offshore bunkering facilities is important for the future of the sector, the Chairman of the Malta Maritime Forum, Godwin Xerri, said, welcoming the Nationalist Party’s proposal.

PN Leader Alex Borg on Tuesday unveiled his party’s proposal for an offshore fuel bunkering hub on Hurd’s Bank. Dr Borg said that such a hub would be finalised by the end of the next legislature, and that in its first three months of operation, it would generate €450 in revenue.

The party said that while originally it would be used for LNG fuel bunkering, it would be able to be adapted to provide other fuels also.

The Malta Maritime Forum (MMF) Chairman described the proposal as “very positive,” and said that the MMF welcomes such initiatives.”

Mr Xerri said that the forum has constantly been advising that the sector needs to move offshore, “as we cannot continue taking up land to expand the sector. The technology is available for offshore floating or anchored fuel bunkering stations, and this is a must for Malta.”

Mr Xerri highlighted that the international maritime industry is not in agreement on what fuel to use in the future. “Some say LNG, others say nitrogen, clean fuels or biofuels. Ships are being built with engines that can consume different fuels.” As such, he said the PN’s plan for the facility to be able to cater for other fuel types is also welcome.

“Malta has a leading bunkering industry, selling millions of tonnes of fuel each year. It results in a multi-million turnover for the country.”

He said that this sector in Malta cannot retain its position unless it has facilities like the offshore facility being proposed, “which will enable us to cater for ships coming to the country for fuel bunkering. If not, we will see ourselves squeezed out of the bunkering market.”

He said that the traditional fuels are on the way out in the sector. “We cannot keep offering something the market will not want, and we have to prepare to offer new fuels.” Making use of the sea is a logical option, Mr Xerri said.

As for the location proposed by the PN, Hurd’s Bank, he said that it makes sense because it is, relatively speaking, the shallowest waters around Malta.

While the MMF was not directly consulted by the PN on the party’s proposal, he said that the forum does have a close line with both political parties, and said it has discussed with both that bunkering has to utilise a different formula for the future.